Apple
Apple officially launched Apple Upgrade today, a new leasing program for iPhone, Apple Watch, Mac, and iPad run in partnership with Klarna. The program is live now on the Apple Store online, in the Apple Store app, and at Apple Store locations across the US.
Leasing prices start at $17.99 a month for iPhone, $11.99 for Apple Watch, $24.99 for Mac, and $11.99 for iPad. iPhone and Apple Watch leases run 12 or 24 months, while Mac and iPad leases run 24 or 36 months. Those starting prices reflect the longest lease term on each device; a shorter term costs more per month for the same hardware. You don't owe money up front, but at the end of the lease, you'll owe money if you want to keep your device. Otherwise, you'll have to send the device back.
For example, an iPhone 17 Pro with 256GB of storage, which costs $1,099 to buy outright, leases for $31.99 a month over 24 months or $45.99 a month over 12 months, before tax and any trade-in credit. The remaining balance owed after a 24-month lease would be $331.24 plus taxes and fees. Trading in a current device at enrollment can lower that payment further, and paying with an Apple Card earns 3 percent Daily Cash back on lease payments.
"At Apple, we put the customer at the center of everything we do," said Karen Rasmussen, Apple's vice president of the Apple Store online, in the press release, "and we're thrilled that Apple Upgrade offers our customers, both online and in-store, a more flexible way to pay for the products they love."
To enroll, lease applicants go through a soft credit check, and they need Klarna's approval. Monthly payments and lease terms depend on the specific device and the applicant's creditworthiness.
At the natural end of the lease, there are three options: start a new lease on a newer device and return the current one, leave the program and return the device, or buy the device outright with a one-time payment through Klarna.
Customers get six months to decide, but you’ll keep on paying during that window. The regular monthly payments continue until a choice is made, and anyone who enrolled with a trade-in credit will see that payment go up, since the credit only applies during the initial lease term, not the six-month decision period. Taking no action by the end of the six months means Klarna charges the purchase option fee automatically and the device is bought outright by default.
Exiting before the initial lease term ends requires paying an early termination fee equal to every remaining monthly payment left on that initial term, plus applicable taxes and fees, and the device has to go back to Apple within 14 days of paying it. That's a pretty steep penalty if you have a lot of time left on the plan. If you'd rather keep the device, you can buy it outright through your Klarna account instead for a fee equal to the device's list price plus tax, minus whatever lease payments, down payment, or trade-in credit have already been applied.
iPhone leases come with one added condition: the phone has to be tied to AT&T, T-Mobile, or Verizon, and prepaid plans don't qualify. The phone itself ships unlocked, so switching carriers later is allowed under each carrier's own terms.
Apple Upgrade replaces the iPhone Upgrade Program and iPhone Payments, both of which Apple is discontinuing in the US. Customers currently enrolled in the old iPhone Upgrade Program can move to Apple Upgrade, switch to Apple Card Monthly Installments, buy their next iPhone outright, or use carrier financing instead, depending on eligibility.
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